Tax impact of moving from being paid a month behind to immediately

RHContractor

Hi. I am a contractor, working on PAYE basis through umbrella company. I recently moved umbrella company. I moved from Company 1 who paid a month behind (ie work done in month one was invoiced at end of month one, and I received payment at end of month 2) to Company 2 who pay immediately upon invoicing (ie work done in month one was invoiced at end of month one and paid at beginning of month 2).
I left Company 1 at the end of September, and received my last pay fro them at the end of October. I started at Company 2 at the beginning of October and received my first pay from them in the first week of November. My first pay with Company 2 I was hammered with tax - as my pay from Company 1 had used up my month's tax-free alllowances. So it feels like moving has cost me a huge amount in extra tax, even though I haven't earned any more - just received it earlier! Seems very unfair!
Will this reconcile itself during the remainder of the tax year as the cumulative tax calcalations happen each month? Or will it be an end of year refund situation?

Dazed_and_confused

If you hadn't moved company what your income (before tax, NIC etc) have been at the end of October/early November?

You aren't paying more than you should, the issue is you've been paid by two companies in one (tax) month so you have had a lot more income.

Payslip next time will be more representative.

Cannot see any reason why you would be entitled to a tax refund.

From your post it seems to me you will be getting paid more in this tax year so you will have to pay more tax.

molerat

As long as the P45 was filled in correctly and used you will pay the correct tax on the amount you earn in the year.